Means-testing ‘cuts pension saving by £3.7bn’

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INSURERS will tell David Blunkett, the Work and Pensions Secretary, that Britain’s lowest-paid workers would save an extra £3.7 billion a year if the Government stopped means-testing retirement benefits.

As many as 20 million workers are deterred from putting money aside for their old age for fear of being penalised, according to research commissioned by the Association of British Insurers (ABI).

The ABI will unveil its findings just days before Mr Blunkett’s pensions summit on June 21.

Helen McCarthy, ABI head of pensions, said: “Action is needed urgently to encourage people to save and save more. (But) individuals and their